Crédit d’impôt pour le développement des affaires électroniques (Tax Credit for E-Business Development)

By mmuise
Description:

This tax measure is designed to consolidate the development of information technologies (IT) throughout Québec. It provides specialized IT sector corporations that carry out innovative, high-value-added activities a tax credit of maximum $25,000 per eligible employee.


Comments on Funding:

Funding takes the form of a tax credit equal to 30% (24% refundable and 6% non-refundable) of the eligible salary paid by the company to eligible employees.

Deadline: Rolling deadline
Eligibility:

Eligible companies must:

  • have activities carrying out mainly in the areas of computer system design or software publishing and are carried out in an establishment located in Québec;
  • demonstrate that:
    a) that at least 75% of its activities are activities of the IT sector and that at least 50% fall under NAICS codes 541514, 541515, 513211, 513212 and, under certain conditions, 561320 and 561330 for the year of the taxation covered by the application for an eligibility certificate or for the previous taxation year;
    b) that its activities grouped under the NAICS codes 541514, 541515, 513211, 513212, 561320 and 561330 consist in particular, in a proportion of at least 75%, of services ultimately provided to persons with whom it is at arm's length or in services relating to applications it has developed and which are used exclusively outside Quebec;
    c) that it maintained at all times, for a given taxation year, a minimum of six eligible full-time employees. However, special rules apply to transfers of activities and business start-ups in Québec.

    d) The activities of the IT sector designate the activities grouped under the codes 334110, 334220, 334410, 417310, 449212, 513211, 513212, 51821, 541514, 541515 and, under certain conditions, 561320 and 561330 of the Classification System of industries of the America (NAICS) 2022 version
  • 0.
  • have eligible employees holding full-time employment, the duties of which consist, in a proportion of at least 75%, in undertaking, supervising or directly supporting work related to the performance of an eligible activity.
Application Steps:

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Documentation Needed:

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Other Things to Note:

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About the author
mmuise